Too Much Chop

The pattern of alternating strength and weakness continues for a fifth straight day, but one difference this time is that we are seeing a bounce rather than a trend day early on. If the market can hold above the opening lows, that would be a good sign. But if 150.40 of the SPDR S&P 500 (SPY) is breached, watch for sell stops to trigger.

Breadth is running about 1800 to 3100, which is not too hot, and other than minor strength in metals, there isn't much sector action. Netflix (NFLX), my stock of the week, continues to be a leader, but Apple (AAPL) is rolling over again and the lack of leadership continues to be an issue.

I'm eager to enter new trades but leery of forcing things. There isn't much sustained momentum with this much chop. One technical setup I'm watching closely is Level 3 (LVLT), which needs volume and a test of the $24.75 level. Celldex (CLDX) is interesting on a secondary offering, and title insurers like Radian (RDN) are of interest on a legal ruling for Assured Guaranty (AGO) this morning. Of course, it looks like the hot money is actively chasing NFLX again.

I'm going to keep digging, but I'm not expecting to find many new buys until we have a better market shakeup.

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